After what was a phase of considerable stability in the Rebar market in Nepal, prices for the vital commodity rose by around NPR 2,000/MT (INR 1,250/MT) in a week.
Producers based in Biratnagar, Nepal informed SteelMint that the prices have increased in line with improved domestic demand and due to rise in Indian domestic as well as export prices. Notably Nepal’s steel prices are highly influenced by Indian markets due to import dependency.
The producers in Nepal have reported offers for commercial grade rebars at around NPR (Nepalese Rupee) 71,000/MT (INR 44,400/MT or USD 685/MT). Meanwhile, few prime brands offers are evaluated at NPR 74,000-75,000/MT (INR 46,300-46,900/MT or USD 714-723). The prices mentioned above are ex-works, size 10-20mm and excluding value added tax (VAT) at 13%.
The producers claimed that, billet export prices by Indian steel mills specifically from eastern parts continue to surge and are hovering at USD 515-520/MT ex-mill, Durgapur for 100mm and induction grade which was last week at USD 505-510/MT for same size/grade.
Offers from Odisha, based manufacturers also reported hike of USD 10-15/MT in a week with current quote at USD 505-510/MT ex-mill.
Recent, a small lot of Wire rod purchase has been reported by a Nepal based mill from a large Indian producer at USD 700/MT CIF Jogbani (Indo-Nepal border) for High carbon and size- 5.5-6.0mm. Meanwhile, offers from medium mills in East India, Durgapur received at around USD 600/MT ex-mill, on CIF basis it would be cost at around USD 625/MT.
Nepal has about 20-25 rolling mills including small, medium & large mills which produces more than 2.0 MnT per annum of steel. The mills largely procure raw materials – Billets from India and finished products from both India & China through Indian ports.
Indian domestic steel prices rallied
Indian steel prices continue to surge and this week prices rose by INR 300-700/MT (USD 4-11) and since start of the month by INR 1,500-2,000/MT (USD 23-30).
The manufacturers in the local market are offering – billet at INR 33,200-33,400/MT (USD 512-515), Rebars 12mm at INR 37,300-37,500/MT (USD 576-579) & Wire rod 5.5mm at INR 38,300-38,500/MT (USD 591-595).
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